Wells Fargo to pay $385 million to settle insurance scam

[TexasTowelie]

Wells Fargo & Co. agreed to pay at least $385 million to customers who say they were signed up for auto insurance without their knowledge or consent when they took out a car loan.

Terms of the proposed settlement, which needs to be approved by a judge, were filed Thursday in federal court in Santa Ana. National General, an auto insurance underwriter, will pay an additional $7.5 million, according to the filing.

The alleged insurance scam was one of a series of scandals involving Wells Fargo’s handling of customers’ accounts that has rocked the San Francisco-bank bank since 2016. Earlier this year, it said it might have to spend as much as $2.7 billion more than what it set aside by the end of December to resolve legal matters — boosting its estimate of “reasonably possible” legal losses by $500 million from three months earlier.

In the car insurance litigation, Wells Fargo was accused of bilking millions of dollars from “unsuspecting customers who were forced to pay for auto insurance they did not need or want,” pushing almost 250,000 of them into delinquency and resulting in almost 25,000 vehicle repossessions, according to the lawsuit filed in 2017.

Read more: https://www.ocregister.com/2019/06/07/wells-fargo-to-pay-385-million-to-settle-insurance-scam/

[Sherman A1]

1. Good

But not nearly enough. Pulling their corporate charter would be a much better solution.

[mitch96]

6. " Pulling their corporate charter would be a much better solution."

That and sending some of these assholes to JAIL. That will put the fear into 'em.
How about not just a dollar amount but a PERCENTAGE of the money they bilked out of customers. If they made a few billion, a few million would just be the cost of doing business for these guys. How about 50%? 75%? or more of the amount they bilked?? Works for me..
m

[Sherman A1]

7. I like your concept of a percentage

I think it should be a 150% of what they bilked out of the public. People should be made whole in each and every case. I wouldn't send the Executives to Jail (mostly because I don't want to pay for their upkeep), but would force them into some nice job like mopping floors at a homeless shelter for about 20 years. Let them do some real work and get blisters on their hands.

[mitch96]

8. " I wouldn't send the Executives to Jail (mostly because I don't want to pay for their upkeep)"

I think your 150% should cover their cost nicely... They can mop floors in the clink..
m

[Victor_c3]

2. Anytime I hear something illegal done by a bank, it's usually Wells Fargo

Unless it’s drug cartel money. In that case it’s Citibank.

Why doesn’t anyone go to prison for stealing these cars? If I stole even 1 car, they’d lock me up. Steal 25,000 and you pay a fine of $350 mil or $14,000 per car.

These people need to face serious consequences for their actions, not a fine that ends up being tax deductible.

[rurallib]

3. once again the rich buy their way out of trouble

no executive or board members siting in jail like they ought to be.

[Sneederbunk]

4. Crooked as a dog's hind leg.

[Danascot]

5. In 2018 Wells Fargo had a profit of $22.4 billion on revenues of $86.4 billion

So the fine of $385,000,000 is only 1.72% of profit. It's a drop in the bucket. People need to go to jail.